As GM and Ford Struggle To Survive, Import Cars Are Given Huge Tax Break

While the last two remaining American automobile corporations, General Motors and Ford struggle for their very life survival, and the U.S. foreign debt and national debt reach record levels, import hybrid automobiles will be given huge new tax breaks this year.

The national debt is at over $8.1 trillion dollars right now, against an U.S. Treasury income of just $2.2 billion. In 1965, this national debt was only a little over $300 billion. And it took 42 American Presidents 242 years to run up a foreign debt of $1.01 trillion dollars, Mr. Bush was able to run a foreign debt of $1.09 trillion in just five years. Japan holds $682 billion in U.S. Treasury bonds, and China holds $248 billion. Other nations such as South Korea and states in the Caribbean hold the remaining share of the $1.09 trillion in auctioned bonds.

American industry is under terrible assault, with massive outsourcing and job cuts and layoffs. Even many airline employees now earn 40% less than they did in the year 2001. Benefit and pension cutbacks and other labor give backs are common in recent labor contract disputes, not a dispute over better wages or better benefits.

And despite this major seige on American industry and workers, import automobiles, one of the largest dollar value import goods will actually benefit from special tax benefits in 2006. While Toyota may sell in excess of 125,000 hybrid vehicles in 2006 such as the Prius, a $3,150 tax credit will be available for the first 60,000 sold, and then phased down on remaining numbers over the months. At the same time General Motors and Ford, who have few hybrid vehicles to sell, will mostly miss out on this tax credit. One of the few domestic vehicles to qualify is a large Chevrolet Silverado with just 17MPG, which is given a $650 tax credit.

They once said that "so goes GM, so goes the nation". This is still true. American industry is under a great seige from import products, and special tax credits aimed at further allowing imports to chip into American automobile sales will not help the serious financial situation that General Motors and Ford find themselves in.

But with the American government in a very weak position as a servant to foreign bondholders, and wreckless spending by Bush on the costly Iraq War and other areas, foreign lobby interests load up 1,000 page legislative bills that the U.S. Congress passes that most Senators or Congresspersons do not even read before voting on. Even current Chief Justice, John Roberts was a former corporate lobby attorney for Japanese carmaker, Toyota.

Imports already have many price, fuel economy and perceived quality advantages over many American products. Why special tax legislation to give a $3,150 tax credit to imports that already have market advantages along with up to a 25% saving in fuel due to hybrid technology deserve a special tax credit is a very good question. These hybrid vehicles will sell very well as OPEC cuts oil production later month and fuel prices will again increase. There is no need to give away huge tax advantages that mainly benefit import automobiles that are so popular that some Toyota and Honda models are on a waiting list basis.

But the power of foreign business lobby groups is increasing in Washington, where a former foreign lobby attorney is appointed as Chief Justice of the Supreme Court, and special trade benefit legislation abounds. American industry is a dying trade, just like the horseshoer, town cryer, cobbler or blacksmith. Too much indebtedness to foreign powers is hastening the decline of American industry and workers. And young consumers lack the product loyality to American brands that their parents or grandparents once had.

American industry and highly paid American factory workers are beginning to circle the drain. Usually in history no society survives much longer than 200 years. Like the Roman Empire, Babylon and other failed societies, our society is sowing our own seeds of societal destruction.